Included in this issue: FCA policy development update - July 2018; PPI commission to be repaid with interest; EPC updates mobile contactless card payments guidelines and more. 


UK 

FCA policy development update - July 2018

The Financial Conduct Authority has published its latest policy development update for July 2018 containing recent and upcoming publications. 

FCA, 6 July 2018

BoE’s Vicky Saporta on the future of banking regulation

A speech given by the executive director of the Bank of England's (BoE) prudential policy directorate, Vicky Saporta, looks at the impact of Basel III and the future of banking regulation. The published speech says the industry should not expect much in the way of further reform to bank regulation, particularly regarding banks’ capital and liquidity, but the BoE would consider making adjustments to regulations in response to unintended consequences and new risks ‘to ensure that the resilience we injected into the banking system post-crisis stands the test of time’.

BoE, 4 July 2018

FCA proposes Directory of Financial Services workers

The FCA has proposed a new Directory of financial services workers to help consumers and firms check the status and history of individuals working in financial services. 

FCA, 4 July 2018

FCA consults on guidance for PPI complaints and commission after Plevin

The FCA has issued Consultation Paper CP18/18 on “Guidance on regular premium PPI complaints and recurring non-disclosure of commission”. The FCA view is that where PPI was added on a monthly basis to credit card accounts, then firms have to go back and assess whether there was “recurring non-disclosure” (it calls this RND) of commission. The guidance deals with an uncertainty that has emerged since the rules were made following the Supreme Court judgment in Plevin v Paragon Personal Finance Ltd [2017] UKSC 23. The FCA says that firms have to go back before April 2007 when the unfair relationship provisions in the CCA 2006 came into force.  

FCA, 4 July 2018

PPI commission to be repaid with interest

A lender has been ordered to repay the full amount of commission received from a PPI insurer, plus interest  – and not just the element over 50% noted in FCA guidance. The lender had received from a PPI insurer £7,985 in commission and profit share monies, totalling 76% of the premium. The lender failed to produce evidence to justify the level of commission received, and the relationship was deemed unfair.

Doran v Paragon Personal Finance Ltd, 26 June 2018 (Manchester County Court, unreported)

Consolidation of UK retail payment systems now complete

The NPSO has now completed the consolidation of the UK's retail interbank payment systems, having taken responsibility for the systems run by Bacs Payment Schemes Limited (Bacs) and Faster Payments Scheme Limited (FPS) on 1 May 2018.

PSR, 2 July 2018

HoC Library issues briefing paper on Brexit and financial services

The House of Commons Library has published a briefing paper on the UK’s financial services sector and Brexit. The briefing covers immediate reactions from relevant organisations such as the Bank of England, emerging issues from the immediate post referendum period to a year away from the formal Brexit date and the UK government's approach to legislative implementation.

HoC Library, 28 June 2018

Worldwide 

EPC updates mobile contactless card payments guidelines

The European Payments Council has updated the mobile contactless card payments (MCPs) interoperability implementation guidelines, last published in 2011. 

EPC, 2 July 2018

Key contacts

Amanda Hulme

Amanda Hulme

Partner, Head of Financial Regulation
London

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Lorna Finlayson

Lorna Finlayson

Partner, Financial Regulation
Edinburgh

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Rosanna Bryant

Rosanna Bryant

Partner, Financial Regulation
United Kingdom

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